Tamil Nadu

North Chennai

CC/375/2018

T.Munirathinam - Complainant(s)

Versus

National Insurance Co Ltd - Opp.Party(s)

B.Kesavan

06 Feb 2020

ORDER

 

                                                            Complaint presented on:  31.05.2012

                                                               Order pronounced on:  06.02.2020

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (NORTH)

2^nd Floor, Frazer Bridge Road, V.O.C.Nagar, Park Town, Chennai-3

 

PRESENT:  TMT.K.LAKSHMIKANTHAM, B.Sc., B.L., DTL.,DCL, DL & AL -  PRESIDENT

 

TMT.P.V.JEYANTHI B.A., MEMBER - I

 

THURSDAY THE 06^th DAY OF FEBRUARY  2020

 

C.C.NO.375/2018

T.Munirathinam,

S/o.Thangavelu,

No.4, Ottakuthar Street,

Thiruttani Taluk, Trivallur District.

                                                                                     …..Complainant

 ..Vs..

1.Regional Manager,

National Insurance  Company Limited,

Regional Office,

169, Anna Salai, Chennai – 600 002.

 

2.The Manager,

National Insurance Company Limited,

Div.No.10, Flat No. 101-106, BMC House,

Connaught Place, New Delhi -110 001.

 

3. The Manager,

Popular Vehicles and Services Ltd.,

No.93/1, Arcot Road,

Virugambakkam, Chennai – 600 092.

.....Opposite Parties

Counsel for Complainant                         : M/s.B.Kesavan, S.N.Dhananjeyan &

                                                                      M.Sathyan

Counsel for 1^st & 2  opposite parties          : M/s. Elveera Ravindran, S.Manohar

Counsel for 3^rd opposite party                     : Ex – parte (17.12.2012)

 

ORDER

 

BY PRESIDENT TMT.K.LAKSHMIKANTHAM, B.Sc., B.L., DTL.,DCL, DL & AL

          This complaint is filed by the complainant u/s 12 of the Consumer Protection Act.1986.

1.THE COMPLAINT IN BRIEF:

          The complainant insured  Maruti Alto  Car bearing Regn.No.TN20-BC-1715 with opposite parties. The complainant’s earlier Insurance Policy No.120537597 dated 29.11.2010 was due to expire by midnight of 03.01.2012. He being a prompt customer, approached the 3^rd opposite party herein on 14.12.2011 for renewal of his Insurance Policy and also issued a cheque bearing No.991990 dated 14.12.2011 drawn on the Kancheepuram Central Co-operative Bank Ltd., Tiruttani Branch in favour of the Insurance Company for Rs.5,764/- the same being the premium payable on renewal of the policy. The 3^rd opposite party herein, after processing, renewed the policy and issued the certificate of Insurance being policy No.35101031116130459126 on 16.12.2011 covering the period from 04.01.2012 to 03.01.2013 midnight. On 06.02.2012   insured car was damaged due to the falling of coconuts from the tree. Hence he took his car to the 3^rd opposite party which is the authorized service centre. The insured car was repaired and the charges for the same was covered under the insurance policy. To his utter shock and surprise, the 3^rd opposite party after repairing the car, raised a bill of Rs.6066.50 and claimed the amount from the complainant stating that the Insurance Company has refused the claim due to policy break. The complainant received  an endorsement No.10725178 from the 1^st opposite party herein (ante) dated 16.01.2012 stating that the policy No.35101031116130459126 stands cancelled. The complainant was put to severe hardship, mental agony and financial loss due to the unlawful acts and deficient service of the opposite parties. Hence, he caused a legal notice to the opposite parties. But no reply or constructive action was forthcoming from them. Hence this complaint.

2. WRITTEN VERSION OF THE 1^st & 2^nd OPPOSITE PARTIES IN BRIEF:

           The complainant availed the insurance policy for the period 04.01.2011 to 03.01.2012. Thereafter the same had to be renewed before the expiry of the policy and according to the complainant he did not submit the premium to these opposite parties but to the 3^rd opposite party herein. On belated receipt of the cheque bearing No.991990 date 14.12.2011 drawn on the Kancheepuram Central Co-operative Bank  Ltd., Tiruttani in favour of the opposite parties, the opposite parties as per their administrative procedure came to know from their head office that said cheque had been returned by the complainant’s bankers. The complainant has alleged that on 06.02.2012 his vehicle was damaged due to the fall of the coconuts from the tree and he had taken the vehicle to the 3^rd opposite party for repair. The vehicle was repaired by the 3^rd opposite party. It is false and misleading to state that the charge for the said repair are covered under the policy. The policy was cancelled due to nonpayment of premium.  The complainant  himself has admitted that he did not pay the premium to these opposite parties. Hence the opposite parties had rightly repudiated the  claim since there was no liability. This Hon’ble Forum may be pleased to dismiss the complaint as there is no deficiency in service.

3. POINTS FOR CONSIDERATION:

          1. Whether there is deficiency in service on the part of the opposite parties?

          2. Whether the complainant is entitled to any relief? If so to what extent?

 

 

4. POINT NO :1 

          Complainant  had insured his vehicle Maruti Alto  Car bearing no. TN20-BC-1715 with National Insurance Company  policy  bearing  number 35101031116130459126 was due to expire by midnight  of 03.01.2012. Complainant approached the 3^rd opposite party  who is said to be the agent of 1^st & 2^nd opposite parties  and issued a cheque  bearing No.991990 drawn on Kancheepuram Central Co-operative Bank Ltd., Tiruttani Branch in favour of the Insurance Company for Rs.5,764/-  dated 14.12.2011 for the premium due.  The Insurance Policy was renewed .  RC book of the complainant and Insurance Policies are marked as Ex.A1 to Ex.A3. Ex.A3 is the  policy covered the period from 04.01.2012  to 03.01.2013. On 06.02.2012, Insured car of the complainant  got damaged  due to fall of the coconut from  tree  and the car was taken to 3^rd opposite party’s  service centre which is an authorized one for the complainant’s vehicle. Job Card for the same is Ex.A5. After repair was done the 3^rd opposite party  had claimed Rs.6066.50/- from the complainant  stating that the Insurance Company had refused to make the payment for repair in view of break of the complainant’s policy.

          05. The 2^nd opposite party  had informed the complainant  under Ex.A4 dated 16.01.2012 that the policy bearing No.35101031116130459126 stands cancelled as the premium of the cheque was not paid  by the complainant’s  bank due to drawer bank branch detail not clear and also requested the complainant to return the original policy under Ex.A4. Intimation given by KancheepuramCentral Co-operative Bank Ltd., to the complainant regarding the non-payment of the said cheque is Ex.A6. Job card with estimated value and also with an endorsement of breakage in the Insurance policy is Ex.A7.  Service estimate for the repair of the vehicles for Rs.6066.50  is  Ex.A8. The complainant had issued legal notice to opposite parties  under Ex.A9 claiming the amount and its acknowledgement are in Ex.A10 and Ex.A11.

          06. The case of the complainant is  that the insurance company cannot unilaterally cancel the insurance policy even if the cheque amount is unpaid due to the mistake of the complainant.   The tendering of cheque by the complainant  and its acknowledgement would prove the validity of the Insurance Policy.  Cancellation of policy without due notice to the complainant  amounts to deficiency in service and also the intimation letter from these Insurance Company reached the complainant only on 03.03.2012. Due to all  these the complainant suffered mental agony and hardship.

            07. The opposite parties  would contend that they have refused to pay the claim in view of non-payment of the premium and the 3^rd opposite party is not the agent of 1^st & 2^nd opposite parties . As per the terms of the policy for non-payment of the premium or if the cheque is not honoured or returned the Insurance Company has got the right to reject the claim and cancel the policy. Accordingly it was done and there is no deficiency in service on the part of 1^st & 2^nd opposite parties.

08.  The insurance policy is Ex.B1.The contract of insurance is a contract of “Uberrimae Fidei” and the contracting parties are bound by the contract and the policy  terms  in Ex.B2 clearly indicates as,  “if the premium is paid by cheque, the issue of policy is subject to realization of cheque.” Here in this case the cheque was issued on 14.12.2011 and returned on 16.12.2011 itself under Ex.A4.  Details of the return cheque is Ex.B3 and Ex.B4, Ex.B5 is cancellation of the policy and its acknowledgement is Ex.B6. But the complainant’s allegation of its receipt dated 03.03.2012 is not substantiated with authenticated proof. However the return of the cheque would have been reflected in the complainant’s account and he had an opportunity to see the position. Hence complainant cannot plead that he had no knowledge about the return at the earliest point of time. It is an admitted fact that the complainant’s cheque is returned and further complainant had not paid any amount towards the premium. Therefore as per the policy terms, policy issued soon after the receipt of cheque was recalled after it is brought to the knowledge of the insurance company regarding the premium unpaid by the banker as per the policy terms which resulted in non-payment of the claim. Therefore there is no question of renewing the policy by 1^st opposite party and reimbursing the amount spent for repairs.  Since there is no deficiency on the part 1^st & 2^nd opposite parties   the complaint fails and the complainant is not entitled to get any relief against 1^st opposite party. The relief is sought against 1^st opposite party  only which the complainant is not entitled.  As per the above discussions held by us the complaint is liable to be dismissed.

09. POINT NO.2:

In view of point no.1 answered against the complainant , the complainant  is not entitled to any relief against opposite parties and the complaint is dismissed. .

          In the result, this complaint is dismissed. No costs.

          Dictated to the Steno-Typist transcribed and typed by her corrected and pronounced by us on this 06^th day of February 2020.

 

MEMBER – I                                                                PRESIDENT

 

 

LIST OF DOCUMENTS FILED BY THE COMPLAINANT:

Ex.A1 dated 05.01.2010                   R.C.Book in favour of the complainant

Ex.A2 dated 29.11.2010                   Insurance policy period dated 04.01.2011 to

                                                  03.01.2012 along with receipt

 

Ex.A3 dated 16.12.2011          Insurance policy period dated 04.01.2012 to 03.01.2013 along with policy premium receipt

 

Ex.A4 dated 16.01.2012          2^nd opposite party endorsement along with postal cover dated 03.03.2012

 

Ex.A5 dated 11.02.2012          Job card issued by the 3^rd opposite party

 

Ex.A6 dated 24.02.2012          Complainant Bank intimation

 

Ex.A7 dated 28.02.2012          Job card issued by the 3^rd opposite party

 

Ex.A8 dated 28.02.2012          Service charge bill issued by the 3^rd opposite party

 

Ex.A9 dated 12.03.2012          Legal Notice to the opposite parties

 

Ex.A10 dated  1.03.2012         Acknowledgement card

 

Ex.A11 dated 16.03.2012        Acknowledgement card

 

LIST OF DOCUMENTS FILED BY THE 1^st & 2^nd OPPOSITE PARTIES:

 

Ex.B1 dated 16.11.2011                   Policy No.35101031116130459126 certificate of

                                                Insurance

 

Ex.B2 dated NIL                      Terms  and conditions of the policy

 

Ex.B3 dated 24.12.2011                   Details regarding return of cheque from HSBC

                                                    Bank

 

Ex.B4 dated 20.12.2011                   Cheque return memo from Kancheepuram central

                                                    co-operative bank Ltd.,

 

Ex.B5 dated 16.01.2012                   Cancel endorsement certificate

 

Ex.B6 dated NIL                      Speed Post No.ED 60842531

 

                                               

 

 

MEMBER – I                                                               PRESIDENT